Joy Global Inc. Announces Third Quarter Fiscal
2012 Operating Results

August 29, 2012 06:00 AM Eastern Daylight Time

MILWAUKEE--(BUSINESS WIRE)--Joy Global Inc. (NYSE: JOY), a worldwide leader in
high-productivity mining solutions, today reported third quarter 2012
results. Third quarter bookings were $1.1 billion, compared to $1.4
billion in the third quarter of last year, a decrease of 25 percent. Net
sales increased 22 percent to $1.4 billion compared to the same period
last year. Operating income was $299 million, or 22 percent of sales, in
the third quarter of 2012, compared to operating income of $236 million,
or 21 percent of sales, in the third quarter of 2011. Income from
continuing operations was $194 million or $1.82 per fully diluted share
for the third quarter compared to income from continuing operations of
$172 million, or $1.61 per fully diluted share in the third quarter of
2011.

Third Quarter Operating Results

“Our results this quarter continue to show strong execution, but against
a market backdrop of adjustment to lower demand for U.S. coal and
continued slowing of the Chinese economy”, said Mike Sutherlin,
President and Chief Executive Officer. “The original equipment order
rate is impacted by a project pipeline that has slowed but still has
several new projects that should reach equipment selection in the near
term. Reduced aftermarket orders in the U.S. have been mostly offset by
increased orders from international markets. Our operating focus
continues to deliver results, with profit leverage of 25 percent on a 22
percent increase in revenues, and this operating efficiency will serve
us well as we address market uncertainty and volatility. Although there
is evidence that both the U.S. and China markets have bottomed, we
expect a recovery to be sluggish. We are therefore beginning the
implementation of our prior downside planning by adjusting our
operations to match current market conditions so that we can deliver
performance over a range of possible outcomes.”

Bookings - (in millions)

Quarter Ended

July 27

July 29

%

2012

2011

Change

Underground Mining Machinery

$

553.8

$

742.9

(25.5

)%

Surface Mining Equipment

450.1

732.1

(38.5

)%

Eliminations

(75.9

)

(51.3

)

NA

Legacy Business

928.0

1,423.7

(34.8

)%

LeTourneau

91.7

23.6

NA

IMM

64.6

-

NA

Total Bookings

$

1,084.3

$

1,447.3

(25.1

)%

Bookings decreased 25 percent to $1.1 billion in the third quarter of
fiscal 2012, with year over year quarterly order declines in our legacy
business partially offset by the $68 million of incremental bookings
from LeTourneau and $65 million of bookings from IMM. Our current
quarter includes the full results of both these acquisitions, while the
third quarter of last year only includes five weeks of LeTourneau
activity. Orders for the legacy underground and surface businesses
decreased 35 percent in total compared to the third quarter of last
year. Aftermarket orders declined 4 percent, and original equipment
orders were down 62 percent over last year’s third quarter. The stronger
U.S. dollar reduced bookings by $62 million during the quarter.

Bookings for underground mining machinery, excluding IMM, were down 26
percent in comparison to last year’s third quarter. Original equipment
orders were down 55 percent compared to the third quarter of last year,
primarily due to a soft U.S. coal market and a roof support system
ordered in Russia in 2011 that did not repeat in the current period.
Original equipment orders were down in all regions except South Africa.
Aftermarket bookings increased 2 percent due to higher orders in other
international markets offset by a decrease in orders in the United
States and Eurasia. Last quarter, $119 million in underground equipment
orders scheduled for the U.S. coal market were removed from backlog as
we believed there was a reasonable risk of deferral or cancellation of
these orders. During the third quarter, $64 million of these orders
actually cancelled, while $38 million were completed and shipped under
their original terms. Orders for legacy underground original equipment
and aftermarket were negatively impacted by foreign exchange of $25
million and $21 million, respectively.

Bookings for surface mining equipment, excluding LeTourneau, were down
39 percent. Original equipment orders were down 66 percent from the
exceptionally strong third quarter of last year in which a record 18
shovels were booked, while aftermarket bookings declined 2 percent.
Original equipment orders were down in all regions except Australia.
Aftermarket order declines centered in North America were mostly offset
by other international regions.Current quarter legacy surface
business orders for original equipment and aftermarket were negatively
impacted by foreign exchange of $5 million and $11 million, respectively.

Backlog at the end of the third quarter was $2.8 billion compared to
$3.1 billion at the end of the second quarter. Backlog related to the
legacy businesses was $2.5 billion at the end of the third quarter while
backlog related to LeTourneau and IMM remained at $0.3 billion.

Net Sales - (in millions)

Quarter Ended

July 27

July 29

%

2012

2011

Change

Underground Mining Machinery

$

684.9

$

669.2

2.4

%

Surface Mining Equipment

564.6

464.3

21.6

%

Eliminations

(40.9

)

(40.4

)

NA

Legacy Business

1,208.6

1,093.1

10.6

%

LeTourneau

110.9

43.3

NA

IMM

69.2

-

NA

Total Net Sales

$

1,388.7

$

1,136.4

22.2

%

Net sales, excluding LeTourneau and IMM, increased 11 percent to $1.2
billion. Original equipment sales were up 15 percent and aftermarket
sales were up 7 percent over the prior year period. Changes in foreign
exchange rates decreased net sales by $35 million in the third quarter
compared to a year ago.

Net sales of underground mining machinery, excluding IMM, rose 2 percent
in the third quarter compared to a year ago. Original equipment
shipments declined 3 percent and aftermarket shipments were up 7 percent
over the prior third quarter. The original equipment sales were driven
by lower shipments in Eurasia and China offset with higher shipments in
Australia. Aftermarket sales increased in the United States, Australia,
China and South Africa.

Net sales of surface mining equipment, excluding LeTourneau, were 22
percent higher than the same period last year. Original equipment sales
increased 47 percent as last year’s strong order rate flowed into this
year’s sales, with aftermarket sales up 8 percent. Original equipment
sales increases were led by strong results in all regions except South
Africa. Aftermarket sales were up in all regions except China compared
to the prior third quarter.

Operating Profit - (in millions)

Quarter Ended

July 27

July 29

Return on Sales

2012

2011

2012

2011

Underground Mining Machinery

$

164.0

$

156.4

23.9

%

23.4

%

Surface Mining Equipment

134.4

107.6

23.8

%

23.2

%

Corporate Expenses

(12.7

)

(12.7

)

NA

NA

Eliminations

(9.0

)

(9.8

)

NA

NA

Legacy Business

276.7

241.5

22.9

%

22.1

%

LeTourneau

22.2

8.5

20.0

%

19.6

%

IMM

10.5

-

15.2

%

NA

Subtotal

309.4

250.0

22.3

%

22.0

%

Excess Purchase Accounting

LeTourneau

(2.1

)

(2.3

)

NA

NA

IMM

(7.7

)

-

NA

NA

Acquisition Costs

(0.1

)

(11.7

)

NA

NA

Total Operating Profit

$

299.5

$

236.0

21.6

%

20.8

%

Operating profit for the legacy business was $277 million for the third
quarter of 2012, compared to $242 million in the third quarter of last
year. Return on sales was 22.9 percent in the third quarter, compared to
22.1 percent last year. Incremental profitability for the legacy
business was 30 percent on an 11 percent volume increase.

The increase in operating profit, before all of the acquisition
activities, was due to higher sales volume and a reduction in employee
costs compared to the prior third quarter. These items were partially
offset by an increase in unfavorable manufacturing variances.

The current quarter results include $22 million of operating profit from
LeTourneau, net of $3 million of ongoing purchase accounting charges.
Excess purchase accounting charges associated with the write-up of the
acquired inventory and backlog from the LeTourneau transaction were
completed in the third quarter of fiscal 2012, resulting in a final
charge of $2 million.

In addition, the current quarter results include $11 million of
operating profit from IMM, net of $4 million of ongoing purchase
accounting charges. The third quarter results also include $8 million in
excess purchase accounting charges associated with the write-up of the
acquired inventory and backlog of IMM compared to our preliminary
estimate of $5 million. Excess purchase accounting charges from the IMM
transaction will be fully recognized in the fourth quarter of 2012 with
an estimated final charge of $2 million.

Net interest expense increased to $17 million in the third quarter of
2012, up from $6 million in the prior year. The increase in interest
expense is attributable to incremental borrowings associated with
financing for the LeTourneau and IMM acquisitions.

The effective income tax rate was 31.2% in the current quarter
compared to 25.3% in the third quarter of 2011. The effective income
tax rate excluding discrete tax adjustments was 31.5% in the current
quarter compared to 30.6% in the third quarter of 2011. The increase
in the effective tax rate is attributable to continued refinement of
our full year forecast of domestic and international earnings. The
effective tax rate is expected to be between 31.0 and 31.5 percent
for 2012.

Impact of Acquisitions and Unusual Items on Earnings Per Share

Quarter Ended

July 27, 2012

July 29, 2011

Dollars

Fully

Dollars

Fully

in millions

Diluted EPS

in millions

Diluted EPS

Income from continuing operations, attributable

to Joy Global Inc., as reported

$

194.3

$

1.82

$

171.8

$

1.61

Add:

LeTourneau excess purchase accounting, net of tax

1.3

0.01

-

-

IMM excess purchase accounting, net of tax

5.8

0.05

-

-

Acquisition costs, net of tax

-

-

8.1

0.08

Incremental interest expense, net of tax

7.5

0.07

-

-

Deduct:

Net discrete tax benefits

0.6

0.01

12.1

0.11

LeTourneau, net of tax

8.8

0.08

4.3

0.04

IMM, net of tax

7.3

0.07

-

-

Income from Continuing Operations Attributable

to Joy Global Inc., Before Acquisition Activities and Unusual Items

$

192.2

$

1.79

$

163.5

$

1.54

Income from continuing operations in the third quarter was $194 million
or $1.82 per fully diluted share, compared to income from continuing
operations of $172 million or $1.61 per fully diluted share in the third
quarter of the prior year. The table above lists the acquisition
activities and unusual items that affected third quarter earnings per
share compared to the same quarter last year.

Cash provided by continuing operations was $157 million in the third
quarter, compared to cash provided by continuing operations of $96
million a year ago. The increase in cash provided by continuing
operations during the third quarter was due to higher earnings, a
reduction in the inventory build year over year and collections of
accounts receivable offset by a reduction in advance payments resulting
from a decline in new original equipment order activity.

Capital expenditures were $55 million in the third quarter of fiscal
2012, compared to $22 million in the prior year third quarter, due to
continued investments in manufacturing capacity in emerging markets and
aftermarket service infrastructure. Capital expenditures for fiscal 2012
are expected to be approximately $220 million which includes capital
expenditures from our acquired LeTourneau and IMM businesses.

Market Outlook

The demand for commodities has slowed, adjusting to weaker global
economic growth. Recent economic data is mixed, but is generally
consistent with low U.S. growth, Europe contracting and China
decelerating. With demand slowing, recent capacity additions have
created supply surpluses and depressed pricing for most commodities.
Customers are responding by cutting capital expenditures, reducing
overhead and trimming production. Production cuts have been greatest in
U.S. coal, but the closure or reduction of higher cost coal mines is
also in process in Australia and Russia.

As noted, U.S. coal has experienced the most severe decline, driven
primarily by lower electricity demand and electricity generators
switching to natural gas. Electricity demand in the U.S. was down over 5
percent during the winter heating season, which is greater than the 4
percent decline in 2009 that resulted from the global recession. On top
of slowing demand, shale gas production has been expanding rapidly and
creating a significant surplus of natural gas in the U.S. This has
depressed natural gas prices to 10-year lows and also has increased the
dispatch of gas fired generation onto the electricity grid. As a result,
coal’s share of electricity generation has dropped from 43 percent to 32
percent between 2006 and April of 2012 while the natural gas share
increased from 18 percent to 32 percent over the same period. Coal
production in the second calendar quarter was down by 104 million tons
from the first calendar quarter on an annualized basis. It is estimated
that cuts of 100 to 120 million tons are needed to balance the U.S.
market. However, those reductions can be reduced if power generation is
switched from natural gas back to coal.

Current natural gas prices are below the cost of drilling programs, and
the number of rigs drilling for natural gas declined in August to the
lowest level in over a decade. Natural gas prices need to be above $4.00
per million BTUs to generate adequate returns in most shale gas regions.
This is supported by the futures strip, which trends up and moves above
$4.00 per million BTUs by 2014. Various forecasts project natural gas
prices approaching this level a year sooner. Natural gas switching
reached a peak in April as prices dipped below $2.00 per million BTUs,
but switching back to coal has occurred as natural gas prices recently
moved toward $3.00 per million BTUs. The first beneficiary of coal
switching is Powder River Basin coal, and its rail car loadings
increased by 16 percent from June to July. The longer term confidence
that our customers have in Powder River Basin demand is evidenced by the
increased acreage that has been leased in the past few months. Coal
switching will also benefit the Illinois Basin, Northern Appalachia and
Central Appalachia, as natural gas prices move progressively from $3.00
per million BTUs to $4.50 per million BTUs.

It is believed that a significant portion of coal’s share loss to
natural gas can be recovered as natural gas prices increase. However,
this may take a couple of years. In addition, most of the available
excess capacity in power generation now resides in coal-fired units, and
this will provide another upside for coal as power demand returns to
normal levels. U.S. coal will also benefit from exports that tap into
the growing demand in the seaborne markets. Europe is one of the main
markets for U.S. Eastern coal, and its coal demand has been growing at
12 percent. In addition, two-thirds of its 36 gigawatts of new
generating capacity will be coal-fired. U.S. customers also see Asia to
be undersupplied in the long term. In response, they have announced
increases in port capacity to 270 million tons to capture the expected
opportunities in the export markets.

China’s economy continues to decelerate. Demand for electricity is up 3
percent in May of 2012, compared to a growth rate of 10 to 11 percent a
year ago. In addition to the effect of a slowing economy, recovery in
hydropower generation has further reduced coal demand. Coal production
in China has continued to increase as demand has slowed, further
depressing prices. As prices dropped below $100 per tonne, imported coal
gained an advantage over domestic production, and stockpiles at the
domestic transfer point of Qinhuangdao increased and approached
capacity. Higher cost domestic production was subsequently reduced and
Beijing further mandated that domestic coal production be limited to 7
percent above 2011 levels. The month of July saw power demand rise 15
percent from June levels and 7 percent from last year. As a result,
Qinhuangdao inventories have declined by 25 percent since early July,
and seaborne prices have begun to recover.

Power generation in India is up 11 percent this year, while thermal coal
imports are up 13 percent. Domestic production grew only 2.6 percent
last year and it continues to fall well short of plan, putting more
pressure on imports. The thinness of supply-demand was evidenced by a
recent brownout that affected 600 million people, and many power plants
continue to run with stockpiles of a week or less. In addition, India
plans to add 97 gigawatts of coal-fired power generation over the next
three to four years, requiring an additional 300 million tonnes of coal.
As a result, India’s coal demand will continue to be a main driver in
the seaborne market.

Turning to other commodities, strong demand from China and production
limitations has kept the copper market in deficit during the first half
of the year. This supply deficit increased by over 350 thousand tons
compared to the first half of last year. Although China imports are
expected to slow, the copper market should remain in deficit during the
second half of the year.

Although global steel production is expected to be up 3 to 4 percent
this year, this growth has occurred in the first half of the year and
steel production has leveled and is expected to remain flat in the
second half. This will limit demand volumes for met coal and iron ore,
favoring the lower cost producers for each commodity.

China produces 42 percent of global iron ore supply, but ore grades at
20 percent keep costs high. As a result, China becomes a swing producer
above its estimated profitability threshold of $120 per tonne. Despite
the current dip in spot prices, the iron ore market should find support
at the $120 per tonne level, and this will favor producers in Western
Australia and South America.

A high percentage of China’s met coal is mined from small mines in
Shanxi province that have been the subject of safety campaigns, which
has reduced supply of hard coking coal and increased costs by more than
40 percent. Additionally, increased use of large blast furnaces in China
requires greater volumes of hard coking coal. The combination of these
two factors will continue to increase met coal imports into China from
the current level of 46 million tons annually.

Recent information indicates that commodity markets are stabilizing at
current levels. It is expected that demand will remain relatively flat
until a broader recovery in the global economy provides a catalyst for
increased commodity demand and capacity expansion. In the meantime, most
commodities are oversupplied or near balance. As a result, customers are
slowing their capacity expansion projects. Projects already underway
remain in process, but they are being slowed by additional engineering
review and updated project plans. The next round of projects has been
reduced, and there is an increased focus on brown field projects that
have shorter time to first production and less project risk. Many larger
greenfield projects have been pushed out beyond 2013. As a result, it is
expected that announced capital budgets will be underspent this year,
and that under current market conditions, spending for next year will be
flat.

Company Outlook

“The outlook for our business has continued to decline over the past
quarter,” continued Sutherlin. “Although the U.S. market has progressed
in line with our expectations, the deceleration of China demand has
deteriorated international markets more quickly and severely than
previously expected.”

“The U.S. customers have adjusted quickly to their market conditions.
Second quarter production was reduced on an annualized basis to a level
in the range estimated to balance the market. We have seen natural gas
prices start to move back to more normalized levels, and this has
resulted in some switching back to coal. As a result, we see the U.S.
coal market at the bottom, with opportunities to recover volume through
return of power demand and switching back to coal. However, this will be
a slow recovery, and therefore we must adjust to a structural change in
the U.S. market. Natural gas will continue to be a competitive fuel, and
this will force U.S. coal production into lower cost basins. We expect
much of the production cuts in Central Appalachia to be permanent, but
replaced by increases in the Illinois and Powder River basins.”

“We are also encouraged to see signs of demand stabilization in China.
Although this limits growth until broader economic recovery is realized,
it will also limit the downside. IMM was adversely impacted by lower
order rates in June and July as domestic stockpiles grew, and we expect
this to continue until the Chinese domestic market returns to balance
later this year. At that point, we expect IMM to return to growth rates
more consistent with those earlier this year. In addition, we expect
upside from integration programs focused on technology transfer,
operational excellence, and aftermarket development.”

“The deceleration of China is also affecting those regions that are
commodity exporters. Some projects no longer make the economic
threshold, but most of the impact is to rationalize capital expenditures
and to improve project returns though additional engineering and project
management review. This results in project slowing, and in some cases,
time gaps between the higher potential projects. As a result, we expect
to experience greater lumpiness in original equipment bookings going
forward. To put this in context, we did not have any major contracts in
our second or third quarter bookings, but continue to work several
projects that are expected to become bookings in the next few months.”

“We expect these factors to reduce revenue by approximately $100 million
from our previous guidance, and total fiscal 2012 revenue will be
between $5.450 billion and $5.550 billion. As a result of the decrease
in expected 2012 revenue, full year earnings per fully diluted share are
expected to be between $7.05 and $7.20, before restructuring charges. We
have continued to implement actions to reduce cost in order to manage
profitability in a softer market. Cost reduction actions will accelerate
in the fourth quarter and we anticipate incurring restructuring charges
of up to $20 million, reducing fully diluted earnings per share by
$0.13. These actions will result in approximately $40 million of annual
cost savings in the 2013 fiscal year and are part of a program to
transform operations of the company in line with future markets.
Including $20 million of fourth quarter restructuring charges, fiscal
2012 earnings per fully diluted share will be between $6.92 and $7.07.”

“As we look forward, we see our fiscal year 2013 revenues to be flat to
down slightly under a continuation of current market conditions. We will
use this period as an opportunity to accelerate our strategy by
consolidating capacity in traditional markets and expanding our position
in those markets where we anticipate growth over the longer term. We
expect to incur additional restructuring costs in 2013 which will
further reduce our cost structure, and make sustainable improvement in
process efficiency and margins.”

Quarterly Conference Call

Management will host a quarterly conference call to discuss the
Company’s third quarter results at 11:00 a.m. EDT on August 29, 2012.
Interested parties can listen to the call by dialing 888-504-7966 in the
United States or 719-325-2437 outside of the United States, access code
7285398, at least 15 minutes prior to the 11:00 a.m. EDT start time of
the call. A rebroadcast of the call will be available until the close of
business on September 19, 2012 by dialing 888-203-1112 or 719-457-0820,
access code 7285398.

Alternatively, interested parties can listen to a live webcast of the
call on the Joy Global Inc. website at http://investors.joyglobal.com/events.cfm.
To listen, please register and download audio software on the site at
least 15 minutes prior to the start of the call. A replay of the webcast
will be available until the close of business on September 28, 2012.

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Terms
such as “anticipate,” “believe,” ”could,” “estimate,” “expect,”
“forecast,” “indicate,” ”intend,” “may be,” “objective,” “plan,”
“potential” “predict,” “will be,” and similar expressions are intended
to identify forward-looking statements. The forward-looking statements
in this press release are based on our current expectations and are made
only as of the date of this press release. In addition, certain market
outlook information is based on third-party sources that we cannot
independently verify, but that we believe reliable. We undertake no
obligation to update forward-looking statements to reflect new
information. We cannot assure you the projected results or events will
be achieved. Because forward-looking statements involve risks and
uncertainties, they are subject to change at any time. Such risks and
uncertainties, many of which are beyond our control, include, but are
not limited to: (i) risks of international operations, including
currency fluctuations, (ii) risks associated with acquisitions, (iii)
risks associated with indebtedness, (iv) risks associated with the
cyclical nature of our business, (v) risks associated with the
international and U.S. coal and copper commodity markets, (vi) risks
associated with access to major purchased items, such as steel,
castings, forgings and bearings, and (vii) risks associated with labor
markets and other risks, uncertainties and cautionary factors set forth
in our public filings with the Securities and Exchange Commission.

JOY-F

JOY GLOBAL INC.

SUMMARY OF CONSOLIDATED STATEMENT OF INCOME

(Unaudited)

(In thousands except per share amounts)

Quarter Ended

Nine Months Ended

July 27,

July 29,

July 27,

July 29,

2012

2011

2012

2011

Net sales

$

1,388,723

$

1,136,352

$

4,065,984

$

3,068,613

Costs and expenses:

Cost of sales

912,939

739,626

2,716,404

2,013,615

Product development, selling and administrative

179,436

165,325

532,825

438,985

Other income

(3,127

)

(4,591

)

(29,903

)

(7,839

)

Operating income

299,475

235,992

846,658

623,852

Interest expense, net

(16,802

)

(6,032

)

(49,999

)

(13,600

)

Reorganization items

-

-

-

(35

)

Income from continuing operations before income taxes

282,673

229,960

796,659

610,217

Provision for income taxes

88,291

58,155

241,806

174,208

Income from continuing operations

194,382

171,805

554,853

436,009

Income from continuing operations attributable to non-controlling
interest

(38

)

-

(180

)

-

Income from continuing operations attributable to Joy Global Inc.

194,344

171,805

554,673

436,009

Income (loss) from discontinued operations, net of income taxes

(826

)

1,300

(5,215

)

1,300

Net income

193,556

173,105

549,638

437,309

Net income attributable to non-controlling interest

(38

)

-

(180

)

-

Net income attributable to Joy Global Inc.

$

193,518

$

173,105

$

549,458

$

437,309

Basic earnings per share:

Continuing operations

$

1.83

$

1.63

$

5.24

$

4.16

Discontinued operations

(0.01

)

0.01

(0.05

)

0.01

Net income

$

1.82

$

1.64

$

5.19

$

4.17

Diluted earnings per share:

Continuing operations

$

1.82

$

1.61

$

5.19

$

4.09

Discontinued operations

(0.01

)

0.01

(0.05

)

0.01

Net income

$

1.81

$

1.62

$

5.14

$

4.10

Dividends per share

$

0.175

$

0.175

$

0.525

$

0.525

Weighted average shares outstanding:

Basic

106,025

105,204

105,794

104,803

Diluted

106,866

106,735

106,867

106,475

Note - for complete information, including footnote disclosures,
please refer to the Company's Form 10-Q with the SEC.

JOY GLOBAL INC.

SUMMARY CONSOLIDATED BALANCE SHEET

(Unaudited)

(In thousands)

July 27,

October 28,

2012

2011

ASSETS

Current assets:

Cash and cash equivalents

$

454,237

$

288,321

Cash held in escrow

-

866,000

Accounts receivable, net

1,148,639

884,696

Inventories

1,544,062

1,334,134

Other current assets

189,902

190,568

Current assets of discontinued operations

-

288

Total current assets

3,336,840

3,564,007

Property, plant and equipment, net

779,235

539,571

Investment in unconsolidated affiliate

-

380,114

Other intangible assets, net

599,126

385,441

Goodwill

1,383,654

428,478

Deferred income taxes

62,143

73,123

Other assets

146,379

55,448

Non-current assets of discontinued operations

-

172

Total assets

$

6,307,377

$

5,426,354

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term notes payable, including current portion

of long term obligations

$

82,400

$

35,895

Trade accounts payable

487,811

452,519

Employee compensation and benefits

129,234

147,664

Advance payments and progress billings

823,231

771,841

Accrued warranties

104,208

82,737

Other accrued liabilities

303,301

206,588

Current liabilities of discontinued operations

18,609

27,327

Total current liabilities

1,948,794

1,724,571

Long-term obligations

1,538,460

1,356,412

Accrued pension costs

204,811

332,452

Other non-current liabilities

116,117

61,124

Shareholders' equity

2,499,195

1,951,795

Total liabilities and shareholders' equity

$

6,307,377

$

5,426,354

Note - for complete information, including footnote disclosures,
please refer to the Company's Form 10-Q filing with the SEC.

JOY GLOBAL INC.

SUMMARY OF CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(In thousands)

Quarter Ended

Nine Months Ended

July 27,

July 29,

July 27,

July 29,

2012

2011

2012

2011

Operating Activities:

Net income

$

193,556

$

173,105

$

549,638

$

437,309

Loss (income) from discontinued operations

826

(1,300

)

5,215

(1,300

)

Depreciation and amortization

39,482

19,021

119,826

50,669

Other, net

(38,310

)

(38,057

)

(132,374

)

(107,274

)

Changes in Working Capital Items Attributed to Continuing Operations,

net of acquisition:

Accounts receivable, net

(6,065

)

(30,292

)

(97,330

)

(64,902

)

Inventories

(31,509

)

(106,673

)

(199,470

)

(259,180

)

Trade accounts payable

(3,010

)

(6,099

)

(44,807

)

18,894

Advance payments and progress billings

(10,421

)

81,576

54,040

303,475

Other working capital items

12,025

5,018

(1,717

)

(31,557

)

Net cash provided by operating activities - continuing operations

156,574

96,299

253,021

346,134

Net cash used by operating activities - discontinued operations

(5,589

)

(2,444

)

(15,747

)

(2,444

)

Net cash provided by operating activities

150,985

93,855

237,274

343,690

Investing Activities:

Acquisition of International Mining Machinery, net of cash acquired

(16,468

)

(140,613

)

(955,917

)

(140,613

)

Acquisition of LeTourneau, net of cash acquired

-

(1,041,161

)

-

(1,041,161

)

Withdrawal of cash held in escrow

16,300

-

866,000

-

Property, plant, and equipment acquired

(55,198

)

(22,091

)

(169,290

)

(75,189

)

Other - net

5,570

2,350

7,119

2,514

Net cash used by investing activities - continuing operations

(49,796

)

(1,201,515

)

(252,088

)

(1,254,449

)

Net cash used by investing activities - discontinued operations

-

(361

)

-

(361

)

Net cash used by investing activities

(49,796

)

(1,201,876

)

(252,088

)

(1,254,810

)

Financing Activities:

Share-based payment awards

88

2,809

30,589

70,426

Dividends paid

(18,522

)

(18,382

)

(55,431

)

(54,870

)

Financing fees

-

(9,300

)

(1,620

)

(9,435

)

Debt borrowings

(16,356

)

505,710

213,359

508,861

Net cash provided (used) by financing activities

(34,790

)

480,837

186,897

514,982

Effect of Exchange Rate Changes on Cash and Cash Equivalents

(3,139

)

(865

)

(6,167

)

23,649

Increase (Decrease) in Cash and Cash Equivalents

63,260

(628,049

)

165,916

(372,489

)

Cash and Cash Equivalents at the Beginning of Period

390,977

1,071,141

288,321

815,581

Cash and Cash Equivalents at the End of Period

$

454,237

$

443,092

$

454,237

$

443,092

Supplemental cash flow information:

Interest paid

$

17,897

$

14,350

$

51,629

$

29,312

Income taxes paid

70,239

63,190

148,805

155,995

Depreciation and amortization by segment:

Underground Mining Machinery

$

25,389

$

10,618

$

71,604

$

30,769

Surface Mining Equipment

13,539

8,344

46,937

19,725

Corporate

554

59

1,285

175

Total depreciation and amortization

$

39,482

$

19,021

$

119,826

$

50,669

Note - for complete information, including footnote disclosures,
please refer to the Company's Form 10-Q with the SEC.

JOY GLOBAL INC.

SUPPLEMENTAL FINANCIAL DATA

(Unaudited)

(In thousands)

Quarter Ended

July 27,

July 29,

2012

2011

Change

Net Sales By Segment:

Underground Mining Machinery

$

754,082

$

669,179

$

84,903

12.7

%

Surface Mining Equipment

675,555

507,552

168,003

33.1

%

Eliminations

(40,914

)

(40,379

)

(535

)

Total Sales By Segment

$

1,388,723

$

1,136,352

$

252,371

22.2

%

Net Sales By Product Stream:

Aftermarket Revenues

$

736,653

$

658,855

$

77,798

11.8

%

Original Equipment Revenues

652,070

477,497

174,573

36.6

%

Total Sales By Product Stream

$

1,388,723

$

1,136,352

$

252,371

22.2

%

Net Sales By Geography:

United States

$

590,569

$

506,509

$

84,060

16.6

%

Rest of World

798,154

629,843

168,311

26.7

%

Total Sales By Geography

$

1,388,723

$

1,136,352

$

252,371

22.2

%

Operating Income By Segment:

% of Net Sales

Underground Mining Machinery

$

166,753

$

156,437

22.1

%

23.4

%

Surface Mining Equipment

154,551

113,760

22.9

%

22.4

%

Corporate

(12,770

)

(24,392

)

Eliminations

(9,059

)

(9,813

)

Total Operating Income

$

299,475

$

235,992

21.6

%

20.8

%

Nine Months Ended

July 27,

July 29,

2012

2011

Change

Net Sales By Segment:

Underground Mining Machinery

$

2,279,937

$

1,828,481

$

451,456

24.7

%

Surface Mining Equipment

1,900,206

1,333,372

566,834

42.5

%

Eliminations

(114,159

)

(93,240

)

(20,919

)

Total Sales By Segment

$

4,065,984

$

3,068,613

$

997,371

32.5

%

Net Sales By Product Stream:

Aftermarket Revenues

$

2,142,850

$

1,858,383

$

284,467

15.3

%

Original Equipment Revenues

1,923,134

1,210,230

712,904

58.9

%

Total Sales By Product Stream

$

4,065,984

$

3,068,613

$

997,371

32.5

%

Net Sales By Geography:

United States

$

1,665,214

$

1,402,818

$

262,396

18.7

%

Rest of World

2,400,770

1,665,795

734,975

44.1

%

Total Sales By Geography

$

4,065,984

$

3,068,613

$

997,371

32.5

%

Operating Income By Segment:

% of Net Sales

Underground Mining Machinery

$

500,181

$

406,807

21.9

%

22.2

%

Surface Mining Equipment

407,380

290,673

21.4

%

21.8

%

Corporate

(35,338

)

(50,548

)

Eliminations

(25,565

)

(23,080

)

Total Operating Income

$

846,658

$

623,852

20.8

%

20.3

%

Note - for complete information, including footnote disclosures,
please refer to the Company's Form 10-Q filing with the SEC.

JOY GLOBAL INC.

SUPPLEMENTAL FINANCIAL DATA

(Unaudited)

(In thousands)

Quarter Ended

July 27,

July 29,

2012

2011

Change

Bookings By Segment:

Underground Mining Machinery

$

618,420

$

742,935

$

(124,515

)

-16.8

%

Surface Mining Equipment

541,806

755,747

(213,941

)

-28.3

%

Eliminations

(75,934

)

(51,359

)

(24,575

)

Total Bookings By Segment

$

1,084,292

$

1,447,323

$

(363,031

)

-25.1

%

Bookings By Product Stream:

Aftermarket Bookings

$

690,374

$

686,326

$

4,048

0.6

%

Original Equipment Bookings

393,918

760,997

(367,079

)

-48.2

%

Total Bookings By Product Stream

$

1,084,292

$

1,447,323

$

(363,031

)

-25.1

%

Nine Months Ended

July 27,

July 29,

2012

2011

Change

Bookings By Segment:

Underground Mining Machinery

$

2,102,744

$

2,469,573

$

(366,829

)

-14.9

%

Surface Mining Equipment

1,900,423

1,862,235

38,188

2.1

%

Eliminations

(253,584

)

(132,180

)

(121,404

)

Total Bookings By Segment

$

3,749,583

$

4,199,628

$

(450,045

)

-10.7

%

Bookings By Product Stream:

Aftermarket Bookings

$

2,180,024

$

2,031,165

$

148,859

7.3

%

Original Equipment Bookings

1,569,559

2,168,463

(598,904

)

-27.6

%

Total Bookings By Product Stream

$

3,749,583

$

4,199,628

$

(450,045

)

-10.7

%

Note - for complete information, including footnote disclosures,
please refer to the Company's Form 10-Q filing with the SEC.

JOY GLOBAL INC.

SUPPLEMENTAL FINANCIAL DATA

(Unaudited)

(In thousands)

Amounts as of:

July 27,

April 27,

January 27,

October 28,

2012

2012

2012

2011

Backlog By Segment:

Underground Mining Machinery

$

1,490,593

$

1,744,980

$

1,969,277

$

1,739,932

Underground Backlog Adjustment

-

(118,725

)

-

-

Adjusted Underground Mining Machinery

1,490,593

1,626,255

1,969,277

1,739,932

Surface Mining Equipment

1,492,961

1,668,702

1,716,594

1,560,393

Eliminations

(145,854

)

(152,826

)

(115,325

)

(46,991

)

Total Backlog By Segment

$

2,837,700

$

3,142,131

$

3,570,546

$

3,253,334

Backlog By Product Stream:

Aftermarket Backlog

$

840,139

$

907,604

$

946,750

$

825,195

Aftermarket Backlog Adjustment

-

(18,638

)

-

-

Adjusted Aftermarket Backlog

840,139

888,966

946,750

825,195

Original Equipment Backlog

1,997,561

2,353,252

2,623,796

2,428,139

Original Equipment Backlog Adjustment

-

(100,087

)

-

-

Adjusted Original Equipment Backlog

1,997,561

2,253,165

2,623,796

2,428,139

Total Backlog By Product Stream

$

2,837,700

$

3,142,131

$

3,570,546

$

3,253,334

Note - for complete information, including footnote disclosures,
please refer to the Company's Form 10-Q filing with the SEC.